Singapore's Hyflux secures SGD 400 million rescue package from Utico

The agreement comes after debt-laden Hyflux—once lauded as a national champion running a strategically important water source for the city-state—entered a court-supervised restructuring process this year that threatened to wipe out the holdings of tens of thousands of retail investors.

In a statement, Hyflux said that the deal will see Utico subscribe to SGD 300 million in Hyflux shares, giving the utilities firm a 95 per cent stake and inject working capital of SDG 100 million.

Hyflux, Singapore’s highest-profile debt restructuring, had been looking for an investor after a deal with Indonesian consortium SM Investments fell through in April 2019—a catastrophic slump that stunned 34,000 individual investors and prompted a rare public protest in the country.

Under the proposed terms of the court-approved restructuring, SDG 250 million is to be paid to the unsecured debt holders. Perpetual and preference shareholders can opt for an upfront cash payment or payment in instalments.

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